HI- Define economic value and social value. Why do organizations tend to focus o

Question

HI-

Define economic value and social value. Why do organizations tend to focus on the creation of one type of value, but not both?

What is corporate social responsibility? How can philanthropy add value to a company's shareholders? Stakeholders?

Explain the three types of social entrepreneurship and give examples of each type. When does each type of social entrepreneurship create lasting social value?

Do you believe that social entrepreneurship will be able to solve difficult problems at the base of the pyramid? Provide a logical and fact-based explanation to support your belief.

Explanation / Answer

1. Economic Value is basically the value or estimate of the benefits provided by a product or service to an economic agent. The measurement of economic value is done with respect to its value in terms of currency. Social value, on the other hand, is the quantifiable or non-quantifiable value placed on the experiences of a person’s life. Not all social value can be captured in quantifiable sense.

Generally, organizations lay more importance on economic value as mostly organizations are profit-making entities. The companies aim to depict a business process in monetary or economic terms and generally totally ignore the social impact of the process. However, this is not the correct way. Focus must be maintained on attaining both aspects of the social as well as economic value.

2. Corporate social responsibility in general, refers to the sense of morale that the profit making businesses must have, for social upliftment. It helps in nurturing a positive relationship between the corporate and the society. The basic objective of companies for CSR is:

Companies may use philanthropy as a promotional or a public relations tool, which is aimed at improving the company’s brand image and employer brand in the society. By improving the brand image, consumers will be drawn towards the company’s product or service. Hence the business goes up and the shareholders as well as the stakeholders are benefitted.

3. There are basically 3 types of social entrepreneurship:

Example: Employment creation for minorities

Example: True north Community Co-operative

Example: La Maison Verte, Hearst

4. In my views, social entrepreneurship has the caliber to provide sustainable solution to a majority of problems faced by the base of pyramid (BoP). BoP basically refers to that segment of society, which earns less than $8 per day. Social entrepreneurs generally think creatively and provide out of box solutions to the problems of BoP. These solutions work with the objective of improving the quality of life at the BoP.

For Example: Vestergaard is a healthcare technology company. It has developed a mosquito net, which releases insecticides to the environment. This helps in protecting the BoP against diseases like malaria. This solution has proved successful in various African countries.

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